The Government of Pakistan has increased the utilisation period under the Export Facilitation Scheme (EFS) from nine months to 18 months, in a move aimed at reducing costs for exporters and enhancing their competitiveness, especially for small and medium-sized enterprises (SMEs).

Minister of State for Finance and Railways Bilal Azhar Kayani said that under the revised framework, exporters can continue to import inputs without paying duties and taxes, provided those goods are utilised within the extended 18-month period.

Authorities have also allowed a further extension of up to six months beyond the 18-month limit, subject to approval by a designated committee on a case-by-case basis. To ensure better oversight and prevent misuse, a six-month reconciliation requirement has also been introduced.

The decision was made following recommendations from a technical committee that conducted a detailed review of EFS data and regional practices. The proposal has been approved by Prime Minister Shehbaz Sharif.

According to officials, 7,932 Goods Declarations (GDs) had previously exceeded the nine-month utilisation deadline. With the extension, these cases will now fall back within the scheme’s eligibility framework.

In addition, the government has introduced new facilitation measures, including automatic adjustment of security deposits based on exports and consumption, as well as the right of appeal before the Chief Collector against regulatory decisions.

Officials say the reforms are designed to improve the ease of doing business, reduce procedural delays, and support export-led economic growth driven by the private sector.